Financial Capability Month


During the month of April, the Army recognizes the value of financial education in improving the financial well-being for Soldier, Families, and Civilians with National Financial Capability Month. Financial literacy has been proven to be the key to saving and investment behavior, debt management, and borrowing practices. By developing short-term and long-term financial habits and skills, we have a greater ability to cope with emergency expenses and weather financial shocks that affect our security and freedom of choice.

Breaking down military pay

Whether it’s your monthly base pay, insurance deductions or vacation days earned, your Leave and Earnings Statement (LES) can help you budget your monthly expenses and plan for major purchases. Understanding your LES is crucial to mastering your money and achieving your financial goals.

Staying on top of the information in your LES-like your deductions, allotments, retirement plan, and TSP contributions-is important. In accordance with Army Regulation 637-1, “Army Compensation and Entitlements Policy” it is each Soldier’s responsibility to review their LES every month and immediately report any inaccuracies to their commander and servicing financial office/Army Military Pay Office.

If you have questions about your LES or are curious about the different types of military pay, there are free resources available to help you.


Budgeting

Do you know how much money you spend each month? Budgeting is a great way to get up close and personal with your finances, so you know how every dollar is being spent. Your budget (or spending plan) is part of your roadmap to financial readiness. With the right money plan in place, you can pay off debt, make that major purchase, or save for that vacation you have been wanting to take.

Having a firm understanding of your finances is necessary regardless of where you are in your career. Financial tools and resources like the Financial Well-Being Assessment can help you determine where you are in your journey and provide insight and suggestions for improvement. Answer just 12 simple questions to get your score, then review additional resources organized by topic. All your answers are anonymous and the assessment doesn’t track any data.

As you progress in your career, you may be tempted to spend more as you make more. This unintentional spending is known as lifestyle creep. Plan before your next promotion and think about how you want to spend that extra income to reach your personal and financial goals.

Spending Plan Worksheet

Use this free tool to record your cash flow this month, then use the information to help you plan next month’s cash flow.

Establishing an emergency fund

Are you prepared for the unexpected? Most expenses, like your monthly utilities, phone bill, and car payment, occur regularly. Sometimes expenses pop up that blindside you, like your car needing a new transmission or emergency travel. The best way to plan for unexpected bills is to build and maintain an emergency fund.

Establishing an emergency fund is one essential way you can protect yourself. Putting money aside each month, no matter how small the amount, will help you weather unexpected storms, and recover more quickly!

If you run into an unexpected expense, that your emergency fund won’t cover, there are resources you and your Family can tap into before using a credit card or getting a high interest loan. Installation personal financial managers or counselors can help you create a spending plan and are a trusted source of information when there’s a sudden financial challenge. Army Emergency Relief may be able to provide zero-interest grants or loans for situations like food, emergency travel, and car repair (to name just a few).

Resources for Assistance

The Army's Financial Readiness Program encompasses a range of services:

  • Free Financial Counseling: Soldiers can access free services with credentialed financial counselors to assist in creating spending plans and managing personal finances, including credit and debt.
    Office of Financial Readiness
  • Financial Education: The Army Family Web Portal hosts a variety of computer-based courses that offer insights into consumer affairs and personal financial management.
    Financial Well-Being Assessment
  • Nutritional Assistance: Programs like SNAP and WIC provide supplemental nutrition support for eligible families.
  • Basic Needs Allowance: This supplemental monthly allowance supports service members with dependents who qualify.
  • Dependent Care Flexible Spending Account: Pre-tax account that is used to pay for eligible dependent care services such as child or adult day care. Learn more here.
  • Affordable Meal Preparation: "Meals in Minutes" classes teach how to prepare nutritious meals affordably. On-post dining facilities offer discounted rates for spouses and dependents of Soldiers in certain pay grades. Visit your local Army Wellness Center.
  • Army Emergency Relief: Provides grants, interest-free loans and scholarships to promote readiness and help relieve financial distress of Soldiers and their Families. Learn more here.
  • Financial Readiness Toolkit: This toolkit informs coordinated messaging and planned promotional efforts in support of Soldiers and their Families’ overall financial readiness and well-being. Army, HQDA DCS, G-9 encourages promotion and opportunities to drive awareness of the Financial Readiness Program resources.

*Robyn Mroszczyk is an Accredited Financial Counselor® and the DCS, G-9’s Financial Education Program Manager. Ms. Mroszczyk has worked with soldiers and families for over 17 years. She is also the spouse of an active-duty service member and is stationed in Washington state.